Will the market wait and see how much room the euro has to recover against the U.S. dollar?

Will the market wait and see how much room the euro has to recover against the U.S. dollar?

23.05.2025

In yesterday’s U.S. trading session, the Canadian dollar emerged as the strongest currency toward the end of the session. The CAD/JPY pair rose from 103.122 to 104.074. On the hourly chart, the price moved from the -2σ to the +3σ Bollinger Bands. On the 4-hour chart, the pair is searching for direction just below the 200-SMA support line, while on the daily chart, it is attempting to break above the 20-MA resistance level.

European currencies saw the euro fall against the U.S. dollar, despite the German IFO Business Climate Index for May, released yesterday, improving to 87.5 from 86.9 the previous month.The EUR/USD pair fell from 1.1344 to 1.1256. A decline along the 20-period moving average (MA) on the hourly chart was observed. On the 4-hour chart, a pullback from the +2σ level of the Bollinger Bands has occurred, and on the daily chart, a decline from this month’s high range is evident.

Today’s economic indicators include Japan’s national consumer price index at 8:30 a.m., UK retail sales and Germany’s first-quarter GDP at 3:00 p.m., France’s consumer confidence index at 3:45 p.m., Canada’s retail sales at 9:30 p.m., and U.S. Fed Governor Musalem’s remarks at 10:35 p.m.:St. Louis Fed President Musalem’s remarks, U.S. Kansas City Fed President Schmidt’s remarks, U.S. New Home Sales at 11:00 PM, and U.S. Fed Governor Cook’s remarks at 1:00 AM. We intend to carefully monitor the potential for a recovery in the euro, which has fallen against the U.S. dollar.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?